Its probably one of the most important words regarding a stock.
the thing that is almost misinterpreted is the micro and macroeconomic side of it . Is it not right to assume that a stock even with mediocre micro fundamentals will do better with its sp , provided that it is in the right sector? Will not the macro fundamentals of the sector have greater influence over its share price ? Does than also come down to sentiment?
how many stocks are out there with great micro fundamentals but with poor macro fundamentals? Have their share prices increased purely on their micro fundamentals? I beg differ ! You may get a small % increase if your lucky but most will be moving sideways in a nice orderly crab downward manner. How many stocks in the past and present with great micro fundamentals have depreciated in value due to macro fundamentals and sentiment waning ? Has not every sector endured this at different cycles.
how long should one put a stock in the bottom drawer and wait on favourable macro fundamentals alone ?
